Trend Micro Reports Record Revenues and Earnings in First Quarter

Sales grow 56% and ordinary income increases 48% year over year in Q1, 2001 financial results

Tokyo, Japan - April 26, 2001 - Trend Micro Inc. (TSE: 4704; Nasdaq:TMIC), a worldwide leader in network antivirus and Internet content security solutions, reported consolidated sales of 6,626 million yen (55.7 million US $) and ordinary income of 2,252 million yen (18.9 million US $) for the first quarter of fiscal 2001, ended March 31, 2001. The figures reflect gains of 56% in sales and 48% in ordinary income as compared with the same period a year ago. This increase was driven by strong, well-balanced growth in all three major markets: Japan, North America, and Europe.

If we did not adjust our net sales and ordinary income in accordance with the new revenue recognition policy, our sales would have shown a growth of 61% year over year to 6,848 million yen (57.5 million US $), and ordinary income 62% to 2,475 million yen (20.8 million US $) in the quarter.

Revenues were bolstered by an increase in the sales of high-end, Internet-related antivirus products, including InterScan® VirusWall® and ScanMail® for Microsoft Exchange and Lotus Notes, and the Company's further inroads into the large corporate enterprise and government markets. Further details can be obtained at Financial/Investor Information.

3. Affiliated companies:

Number of consolidated subsidiaries: 16
Number of unconsolidated subsidiaries: 0

NOTE: Financial data for the first quarter of FY 2000 is provided solely for comparison purposes, as the Company did not prepare quarterly earnings statements last year. Moreover, the figures for Q1 FY 2001 and Q1 FY 2000 have not been audited by the Company's certified public accountants or independent auditors, and the financial results described in this release were prepared in accordance with Japanese generally accepted accounting principles (GAAP).

Until the end of FY 2000, the Company and Trend Micro Incorporated (Taiwan) booked revenue for Premium Support and other post-contract customer support services at the beginning of the support period. Effective from FY 2001, the method of recognizing this revenue recognition has been changed and sales revenues from customer support are deferred over the relevant support period.

The following table shows the effect of this change on consolidated sales and ordinary income in Q1 FY 2001, from those for the first quarter of FY 2000, which is calculated on the assumption that the method before the change continues to apply to FY 2001.